As everyone will know, the global recession has affected many places all around the world, making it hard for people to survive. One place that has been hit particularly hard is America and many people in Europe don’t realise this. However, there are also some people that will be able to get benefits from the recession, aslong as you have some extra money.
Currently American house prices are falling and are currently sitting at 50% to 60% down on the prices of 2005. Due to the recession, a huge number of people have decided to sell their homes, this has now led to thousands of properties being up for sale.
Due to the fall in prices, plus the better exchange rate for the dollar, this has made buying a second home much more of a reality for many people. Hopefully, as more money is pumped into holiday homes, it should help both the US and the UK’s recession position. The reason why I say this is because as more people invest in the American housing market, more people will need overseas property insurance.
Most Britains buying homes out there will opt for buying their holiday home insurance from companies within the UK because that’s where they mainly live. This means good news for the UK market because more money is being pumped into that as well. However, insurance companies won’t make alot of holiday cottage insurance sales because although home prices are down all over America, it’s almost impossible to find a small cottage like you would in France or Spain.
